LNG Canada Announces Phase 2 Final Investment Decision

VANCOUVER, BC, Sept. 28, 2026 /CNW/ -- LNG Canada today announced that its Joint Venture Participants (JVPs) – Shell, PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS – have taken a Final Investment Decision (FID) on the LNG Canada Phase 2 expansion project in Kitimat, British Columbia, in the traditional territory of the Haisla Nation.

The decision marks the next step in LNG Canada's development as a British-Columbia-based Project of National Significance, representing one of the largest private sector investments in Canada, building on LNG Canada's Phase 1.

This artist’s rendering illustrates the LNG Canada project at full build-out and may not be to scale. Colours, features, materials and the final location of certain elements are subject to change as ongoing evaluations and design work progress.

"LNG Canada Phase 2 is another nation-building investment that demonstrates Canada can build big things when governments, First Nations partners, local communities, skilled trades, contractors and investors work together with shared purpose. With FID secured, Phase 2 will double LNG Canada's capacity from 14 to 28 million tonnes a year, putting LNG Canada on a trajectory to become one of the largest LNG facilities in the world and helping move Canada toward becoming one of the world's top five LNG exporting nations," said Chris Cooper, President and CEO, LNG Canada. "But Phase 2 is about much more than tonnes. It will create thousands of jobs and further strengthen Canada's role as a trusted energy partner, bringing more responsibly produced Canadian LNG to global markets while supporting long-term prosperity at home."

"LNG Canada's decision to move forward with Phase 2 is a massive vote of confidence in Canada, and proof that not only does Canada have what the world wants – but we can get big projects built to deliver on that," said the Honourable Tim Hodgson, Canada's Minister of Energy and Natural Resources. "At a time when our country must build a stronger economy that allows us to be an energy superpower for the long term, this is exactly the kind of investment Canada needs: catalyzing private capital, diversifying trade, strengthening global energy security, fostering Indigenous partnership, and turning our world-class resources into Canadian lasting prosperity. Canada is building again -- and the world is taking notice."

The Phase 2 expansion will add two additional LNG processing units, known as trains, within LNG Canada's existing Kitimat facility, increasing total production capacity from 14 to 28 mtpa. Phase 2 includes an additional LNG storage tank, condensate tank, loading berth, expanded utility and process systems. LNG Canada has also entered into commercial agreements to act as execution manager, working with Coastal GasLink to expand the capacity of the existing 670-kilometre pipeline through the construction of five new compressor stations. Phase 2 builds on the current Phase 1 footprint and infrastructure that were designed and engineered from the outset to support the first large-scale, four-train LNG export facility in Canada.

On July 14, 2026, LNG Canada announced a landmark equity option agreement with MNT Investments LP, a limited partnership of the economic development organizations of five First Nations neighbouring LNG Canada's operations: Gitga'at Nation, Gitxaała Nation, Haisla Nation, Kitselas First Nation and Kitsumkalum First Nation. Today's Phase 2 decision enables the implementation of that equity option through an investment of up to $1 billion (CAD) in a special purpose entity that will purchase the future LNG storage tank to be built as part of Phase 2. The transaction represents one of the largest Indigenous ownership positions in major Canadian infrastructure.

Together with the Governments of B.C. and Canada, LNG Canada estimates Phase 2 has the potential to generate more than $50 billion in government revenues over the life of the project, including direct spend, taxes, royalties and other government revenues generated through direct and indirect economic activity associated with Phase 2.

LNG Canada's initial construction created significant employment opportunities in B.C. and across Canada with more than 50,000 Canadians contributing to the delivery of Phase 1, while the connecting Coastal GasLink (CGL) pipeline employed more than 25,000 Canadians.

At peak construction, Phase 2 is expected to host up to 4,000 new construction jobs in Kitimat, alongside approximately 2,100 jobs required to build new compressor stations along the CGL pipeline. As with Phase 1, Phase 2 will rely on tens of thousands of skilled tradespeople working safely to complete the project. This activity supports additional employment, contracting and business opportunities in communities across Northern B.C. and supply chains connected to the Phase 2 expansion, creating significant indirect economic benefits alongside the thousands of jobs on-site and along the pipeline. When complete, LNG Canada will add approximately 90 full-time roles and 150 contractor positions to its existing operational workforce in Kitimat, which currently totals over 400 permanent full-time jobs.

LNG Canada will continue to operate under an equity lifting structure, where each of its five Joint Venture Participants is responsible for the offtake of its proportionate share of LNG produced.

Notes to Editors:

Quotes from LNG Canada's Joint Venture Participants:

Cederic Cremers, President, Integrated Gas, Shell

• Shell - "The LNG Canada Phase 2 Final Investment Decision marks an important milestone built on years of collaboration among governments, First Nations, local communities, the supply chain and our joint venture partners," said Cederic Cremers, Shell's Integrated Gas President. "As global LNG demand grows, LNG Canada is well positioned to provide secure, reliable, and flexible energy to customers in Asia. Phase 2 strengthens Canada's role as a competitive energy supplier while creating economic benefits for British Columbia and Canada."

Adif Zulkifli, EVP & CEO Gas & Maritime Business, PETRONAS

• PETRONAS - "The Final Investment Decision for Phase 2 is a significant step forward in our shared ambition to deliver reliable and responsibly produced LNG to the world. It demonstrates what can be achieved through strong partnerships, disciplined execution and a long-term commitment to mutual value creation. PETRONAS is proud to contribute its LNG experience and global market reach as we advance this important development together," said Adif Zulkifli, EVP & CEO Gas & Maritime Business, PETRONAS.

Mr. Zhiyong Liu, President and CEO of PetroChina Canada Ltd.

• PetroChina Company Limited - "PetroChina is proud to be amongst the experienced joint venture participants that approved Phase 2 of LNG Canada today," said Mr. Zhiyong Liu, President and CEO of PetroChina Canada Ltd., "PetroChina is committed to the safe and efficient development of our diversified oil and gas and new energy portfolio. LNG Canada Phase 2 will contribute to achieving our goal of stabilizing global energy supply and providing the low-carbon energy the world needs."

Masaru Saito, Group CEO, Energy & Power Solution Group, Mitsubishi Corporation

• Mitsubishi Corporation - "LNG Canada Phase 2 represents a significant investment in the future of responsible and reliable energy supply," said Masaru Saito, Group CEO, Energy & Power Solution Group, Mitsubishi Corporation. "Together with our partners, we are helping meet growing global energy needs, supporting economic growth in Canada, and enhancing energy security in Japan and Asia. The continued development of LNG Canada will create long-term value for customers, communities, and stakeholders."

Hong Eui-rak, President and CEO of KOGAS

• KOGAS - "The LNG Canada Phase 2 Final Investment Decision marks an important milestone that builds on the successful delivery of Phase 1," said Hong Eui-rak, President and CEO of KOGAS. "KOGAS is proud to be part of this landmark project. Together with our Joint Venture Participants, governments, First Nations and local communities, we look forward to delivering Phase 2 safely and successfully, helping connect reliable LNG supply with growing energy demand across Asia."

Media Kit containing high resolution photographs and video: media kit | LNG Canada

About LNG Canada

LNG Canada operates a liquefied natural gas (LNG) export facility in Kitimat, British Columbia, in the traditional territory of the Haisla Nation. The facility has a 40-year export licence and commenced shipping operations on June 30, 2025.

Phase 1 includes two LNG processing trains with production capacity of approximately 14 million tonnes per annum (mtpa). The Phase 2 expansion will add two additional LNG trains, doubling total production capacity to 28 mtpa.

LNG Canada benefits from access to abundant, lower-cost, natural gas delivered from the Montney Formation through the dedicated Coastal GasLink pipeline. At the plant, the gas is processed using lower carbon-intensity equipment to produce LNG for export. From Canada's West Coast, LNG can be shipped directly to trading partners in Asia in approximately 10 days -- roughly half the sailing time from the U.S. Gulf Coast via the Panama Canal. Together, these advantages position LNG Canada to provide secure, large-scale Canadian LNG with competitive cost and carbon intensity to global markets.

LNG Canada is owned by five Joint Venture Participants: Shell plc, through its affiliate Shell Canada Energy (40%); PETRONAS, through its subsidiary, North Montney LNG Limited Partnership (25%); PetroChina Company Limited, through its subsidiary PetroChina Kitimat LNG Partnership (15%); Mitsubishi Corporation, through its subsidiary Diamond LNG Canada Partnership (15%); and Korea Gas Corporation, through its wholly-owned subsidiary KOGAS Canada LNG Partnership (5%). LNG Canada Development Inc. operates the facility.

About LNG Canada's Joint Venture Participants:

Shell is a global group of energy companies, employing around 85,000 people in more than 70 countries. Its activities range from oil and gas exploration and production to the marketing of fuels and lubricants, and research and development. As a leading global LNG supplier, Shell participates across the LNG value chain, from natural gas production and liquefaction to shipping, marketing, and delivery to customers around the world.

PETRONAS As a progressive global energy and solutions partner, PETRONAS is driven by its purpose to enrich lives for a sustainable future. With presence in over 100 countries, the group continues expanding its portfolios ranging from conventional and cleaner energy solutions to a diverse range of fuel, lubricants and petrochemical products. While ensuring sustainable practices across its operations, PETRONAS strives to ensure just and equitable outcomes in transitioning to a lower carbon future.

Mitsubishi Corporation (MC) is an integrated trading and investment company that develops and operates businesses across multiple industries together with its global network. MC has seven Business Groups: Energy & Power Solution, Materials Solution, Mineral Resources, Urban Development & Infrastructure, Mobility, Food Industry, and Smart-Life Creation. MC has been involved in LNG since 1969 and currently has interests in 13 LNG projects worldwide, capable of meeting approximately 20% of Japan's LNG demand.

PetroChina Company Limited (PetroChina) is one of the world's major oil and gas producers and distributors and a significant player in the global LNG industry. PetroChina is engaged in a wide range of activities related to oil, gas, LNG and new energy, providing energy products which fuel economic and social development. While focusing on growing its core business through innovation and responsible corporate governance, PetroChina actively pursues opportunities for the low-carbon transformation, accelerating new advantages in green development.

KOGAS is one of the world's largest LNG importers and South Korea's principal LNG provider, operating five LNG import terminals and a nationwide pipeline network. KOGAS has taken a new path of seeking opportunities to participate in the development of international upstream projects, as well as downstream businesses.

Media contact: [email protected]

SOURCE LNG Canada Development Inc.